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2

The answer is yes. In fact, there always exist a 'Black Scholes like' formula. Easy to show too. If the risk neutral distribution of the price has cumulative density $P$ and probability density $p$, then $$ E(S-K)^+=E((S-K)\ 1_{S>K})=E(S\ 1_{S>K})-K\ E(1_{S>K}) $$ The second expectation is just $P(K)$, ie the probability that the option ends up in ...


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[Short answer] No closed-form formula in general. You need to resort to numerical methods. Monte Carlo is preferred by most practitioners but you could also use Finite Difference schemes (and sometimes even Fourier inversion techniques depending on the model used and the instruments to be priced). [Long answer] One usually distinguishes between 2 classes ...



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